In the face of climate and ecological crises, it is vital that car use be reduced, while simultaneously shifting towards different powertrains and reducing the size, weight and energy demand of vehicles. This poses a challenge to the global car industry, as its business model historically centres on selling more and larger cars. In this context, the purpose of this paper is to examine the social-ecological limits of industrial restructuring in Germany. A narrative literature review through the lens of Marxian political economy sheds light on intertwined system-immanent barriers to achieving social and ecological sustainability at the sectoral level. Consequently, powertrain electrification is structured by technological dynamism, which fuels appropriation in the quest for metals and rare earths, with significant social and ecological disadvantages. This generates an impasse for the industry’s transition strategies. Understanding how capitalist tendencies generate interlaced and mutually re-enforcing barriers to achieving social-ecological sustainability is key to understanding why industrial transitions are insufficient from a social-ecological perspective.